Bitcoin's recent volatility has led to a shift in market sentiment, with an increasing number of investors taking long positions on the cryptocurrency. Binance data shows that the proportion of long BTC positions has been steadily rising since January 6. This change in sentiment has also been accompanied by a rise in Bitcoin's price, which has rallied from a low of just under $92,000 to its current price of $94,914. However, data also shows that more accounts are selling Bitcoin than buying, indicating uncertainty about whether the rally will continue. The recent shift in sentiment can be attributed to several factors, including the potential sale of $6.5 billion worth of Bitcoin by the Department of Justice. While the market impact of such government actions is often minimal, the news can still affect sentiment. Bitcoin is likely to continue its upward momentum and could reach $99,000, but the true test will come when it reaches $97,000, a psychological resistance level. If Bitcoin follows a similar pattern to the summer of 2024, where it experienced months of decline, it could see further drops. However, the pattern may be invalidated by an external catalyst, such as Donald Trump's inauguration as US President on January 20.



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